Farmers to get 60 additional days for repayment of crop loans: RBI

Mumbai: The Reserve Bank of India (RBI) on Monday said that in view of demonetisation of Rs 500 and Rs 1,000 notes, farmers, whose short term crop loan repayment date falls between November 1 and December 31, will get an additional 60-day grace period.

“In view of the constraints faced by farmers for timely repayment of loan dues on account of withdrawal of legal tender status of Specified Bank Notes (SBNs), it has been decided by the government to provide an additional grace period of 60 days for prompt repayment incentive of 3 per cent to those farmers whose crop loan dues are falling due between November 1 and December 31,” RBI said in a notification here.

Currently, according to the existing crop loan interest rebate scheme for 2016-17, apart from the 2 per cent annual rebate, an additional interest rebate of 3 per cent is also provided if the farmer repays the loan up to the actual date of repayment or the date fixed by banks for repayment, whichever is earlier.

This benefit does not accrue to those farmers who repay after one year of availing such loans.

If the farmers, whose crop loan repayment date falls between November 1 and December 31, repay the crop loan within 60 days from their loan repayment date, the additional 3 per cent interest rebate will continue to apply, it said.